MIRA INFORM REPORT

Report Date :

02.10.2013

IDENTIFICATION DETAILS

Name :	LAXMI SHUTTLELESS LOOMS PRIVATE LIMITED
Registered Office :	Sanghvi Estate, GST Road, Ranip, Ahmedabad – 382480, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.12.2003
Com. Reg. No.:	04-43321
Capital Investment / Paid-up Capital :	Rs.1.100 Millions
CIN No.: [Company Identification No.]	U29263GJ2003PTC043321
TAN No.: [Tax Deduction & Collection Account No.]	AHML00623A
PAN No.: [Permanent Account No.]	AAACL9508P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Semi Automatic and Automatic Looms
No. of Employees :	10 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2300
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appear accumulated losses recorded by the company in financial year 2012. However, trade relations are reported to be fair. Business is active. Payment terms are reported to be slow. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	SE 3B
Rating Explanation	Moderate performance capability and moderate financial strength.
Date	May 2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Mustafs
Designation :	Accounts Department
Contact No.:	91-79-25624393
Date :	02.10.2013

LOCATIONS

Registered Office/ Factory 1 :	Sanghvi Estate, GST Road, Ranip, Ahmedabad – 382480, Gujarat, India
Tel. No.:	91-79-25624393/25620604
Mobile No.:	91-9824083931/9824083935 (Mr. Nimish Manmohandas Sanghvi)
Fax No.:	91-79-25622845
E-Mail :	sales@laxmilooms.com trshah2008@yahoo.co.in
Website :	http://laxmilooms.com
Location :	Owned
Factory 2 :	22/23, Punmaji Industrial Estate, Shahpur, Ahmedabad – 380004, Gujarat, India
Tel. No.:	91-79-25624393/25622510
Fax No.:	91-79-25622845
Sales Office :	Located At : Address: 58, Ardeshir Dadi Street, Gopitha, C. P. Tank, Mumbai – 400004, Maharashtra, India Tel No. : 91-22-23863589 Fax No. : 91-22-23871790 Address : J. J. Gupta Complex, Opposite Citizen Hospita, Agra Road, Bhiwandi – 421302, Maharashtra, India Tel No. : 91-2522-225210 Fax No. : 91-2522-225264

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Nimish Manmohandas Sanghvi

Designation :

Director

Address :

7, Sadhana Colony Co-operative Society, Navrangpura, Ahmedabad – 380009, Gujarat, India

Date of Birth/Age :

01.02.1962

Date of Appointment :

11.12.2003

PAN No.:

ACBPS8852

DIN No.:

00357168

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U17119GJ1981PTC004592	SHANGHVI TEXTILE ENGINEERING PRIVATE LIMITED	Director	17-09-81	17-09-81	Active	NO
2	U29263GJ2003PTC043321	LAXMI SHUTTLELESS LOOMS PRIVATE LIMITED	Director	11-12-03	11-12-03	Active	NO

Name :

Mr. Hemang Manmohandas Shanghvi

Designation :

Director

Address :

7, Hatkesh Society, Near Sharada School, Navrangpura, Ahmedabad – 380009, Gujarat, India

Date of Birth/Age :

31.03.1966

Date of Appointment :

11.12.2003

PAN NO.:

ABVPS54D41

DIN No.:

00357157

Name :

Mr. Divyang Anantrai Shanghvi

Designation :

Director

Address :

6, Paritosh Co-operative Houseing Society, Navrangpura, Ahmedabad – 380013, Gujarat, India

Date of Birth/Age :

26.07.1959

Date of Appointment :

11.12.2003

PAN NO.:

ABVPS536IC

DIN No.:

00357164

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U17119GJ1981PTC004592	SHANGHVI TEXTILE ENGINEERING PRIVATE LIMITED	Managing director	02-09-81	02-09-81	Active	NO
2	U29263GJ2003PTC043321	LAXMI SHUTTLELESS LOOMS PRIVATE LIMITED	Director	11-12-03	11-12-03	Active	NO

Name :

Mr. Ketan Bhavanidas Sanghvi

Designation :

Director

Address :

Flat No. 121 12^th Floor, Kalpataru Royale Plot No. 110, Road No. 29, Sion (East), Mumbai – 400022, Maharashtra, India

Date of Birth/Age :

23.12.1961

Date of Appointment :

11.12.2003

PAN NO.:

ADFPS9275

DIN No.:

00654701

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U72100MH1997PTC108418	WANLAND DATACOM (INDIA) PRIVATE LIMITED	Director	30-05-97	30-05-97	Strike off	NO
2	U17119GJ1981PTC004592	SHANGHVI TEXTILE ENGINEERING PRIVATE LIMITED	Director	22-09-03	22-09-03	Active	NO
3	U29263GJ2003PTC043321	LAXMI SHUTTLELESS LOOMS PRIVATE LIMITED	Director	11-12-03	11-12-03	Active	NO
4	U99999MH1969NPL014319	INDIAN TEXTILE ACCESSORIES AND MACHINERY MANUFACTURERS' ASSOCIATION	Director	16-09-05	16-09-05	Active	NO

KEY EXECUTIVES

Name :	Mr. Mustafs
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Anantrai Manmohandas Shanghvi	22500
Manmohandas Manmohandas Shanghvi	22500
Bhavanidas Manmohandas Shanghvi	22500
Manmohandas Manmohandas Shanghvi	22500
Ketan Bhavanidas Shanghvi	5000
Divyang Anantrai Shanghvi	5000
Nimish Manmohandas Shanghvi	5000
Hemang Manmohandas Shanghvi	5000
TOTAL	110000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Semi Automatic and Automatic Looms
Exports :
Products :	Finished Goods
Countries :	Afghanistan Nepal

PRODUCTION STATUS [AS ON 31.03.2011]

Licensed Capacity	NA
Installed Capacity	NA
Actual Production	113

GENERAL INFORMATION

No. of Employees :

10 (Approximately)

Bankers :

· Bank of India, Shahibaug Branch 313 Ground Floor, Sahajanand Shopping Centre Shahibaug Road Shahibaug, Ahmedabad - 380004, Gujarat, India

• Bank of India, Delhi Chakla Branch, Ahmedabad, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
HDFC Motor Car Loan [Secured against hypothecation of Motor Car]	0.148	0.400
Short Term Borrowings
HDFC Motor Car Loan	0.132	0.000
Bank of India Cash Credit A/C No. 523	10.350	4.046
Bank of India Bhadra Mair Buyer Credit A/C	12.440	5.334
TOTAL	23.070	9.780

Banking Relations :	--
Auditors :
Name :	Tushar R. Shah and Associates Chartered Accountants
Address :	8-G, Vardan Tower, Near Vimal House, Navrangpura, Ahmedabad – 380014, Gujarat, India
PAN No:	AJHPS2590R

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
240000	Equity Shares	Rs.10/- each	Rs.2.400 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
110000	Equity Shares	Rs.10/- each	Rs.1.100 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1.100	1.100
(b) Reserves & Surplus	(0.501)	1.350
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	0.599	2.450
(3) Non-Current Liabilities
(a) long-term borrowings	0.148	0.400
(b) Deferred tax liabilities (Net)	0.000	0.060
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.148	0.460
(4) Current Liabilities
(a) Short term borrowings	22.922	9.630
(b) Trade payables	8.104	2.517
(c) Other current liabilities	7.131	4.862
(d) Short-term provisions	0.260	0.819
Total Current Liabilities (4)	38.417	17.828
TOTAL	39.164	20.738
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2.654	2.734
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.703	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	3.357	2.734
(2) Current assets
(a) Current investments	0.000	4.041
(b) Inventories	8.954	7.696
(c) Trade receivables	14.224	1.571
(d) Cash and cash equivalents	2.792	0.259
(e) Short-term loans and advances	3.662	0.346
(f) Other current assets	6.175	4.091
Total Current Assets	35.807	18.004
TOTAL	39.164	20.738

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.100
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(0.881)
NETWORTH		0.219
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		4.235
TOTAL BORROWING		4.235
DEFERRED TAX LIABILITIES		0.054
TOTAL		4.508
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.368
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.230
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.617
	Sundry Debtors	1.281
	Cash & Bank Balances	5.772
	Other Current Assets	0.047
	Loans & Advances	2.623
Total Current Assets		23.340
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.429
	Other Current Liabilities	13.028
	Provisions	0.973
Total Current Liabilities		21.430
Net Current Assets		1.910
MISCELLANEOUS EXPENSES		0.000
TOTAL		4.508

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	60.815	58.469	27.442
		Other Income	0.163	0.484	0.838
		TOTAL (A)	60.978	58.953	28.280
Less	EXPENSES
		Cost of Materials Consumed	49.456	41.037
		Purchase of Stock in Trade	0.416	0.551
		Employee Benefit Expenses	1.017	1.932
		Other Expenses	12.220	12.108	27.622
		Changes in Inventories of Finished Goods, Work in Progress and Stock in Trade	0.003	(0.117)
		TOTAL (B)	63.112	55.511	27.622
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(2.134)	3.442	0.658
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(2.134)	3.442	0.658
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.480	0.342	0.356
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(2.614)	3.100	0.302
Less	TAX (H)		(0.763)	0.867	0.027
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(1.851)	2.233	0.275
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	(0.881)	(1.156)
	BALANCE CARRIED TO THE B/S		NA	1.352	(0.881)
	IMPORTS		NA	22.311	8.457
	Earnings / (Loss) Per Share (Rs.)		(16.83)	20.30	2.51

Particulars	31.03.2013
Sales Turnover [Approximately]	80.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(3.04)	3.79	0.97
Net Profit Margin (PBT/Sales)	(%)	(4.30)	5.30	1.100
Return on Total Assets (PBT/Total Assets}	(%)	(6.80)	14.95	1.17
Return on Investment (ROI) (PBT/Networth)		(4.36)	1.27	1.38
Debt Equity Ratio (Total Debt/Networth)		38.51	4.09	19.34
Current Ratio (Current Asset/Current Liability)		0.93	1.00	1.09

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10319921	21/10/2011	30,000,000.00	BANK OF INDIA	SHAHIBAUG BRANCH 313 GROUND FLOOR, SAHAJANAND SHO PING CENTRE SHAHIBAUG ROAD SHAHIBAUG, AHMEDABAD - 380004, GUJARAT, INDIA	B26196766

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Short Term Borrowings
From Shareholders and Relatives	0.000	0.250
TOTAL	0.000	0.250

FIXED ASSETS:

• Plant and Machinery
• Building
• Land
• Electric Fitting
• Furniture and Fixture
• Computer System
• Cycle
• Motor Car

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.35
UK Pound	1	Rs.101.20
Euro	1	Rs.84.54

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.